PHILADELPHIA (Reuters) – Mental health facilities operator Psychiatric Solutions Inc (PSYS.O) is close to a deal to be acquired by Universal Health Services Inc (UHS.N), a source familiar with the situation said on Sunday.
Hospital operator Universal Health is expected to pay between $33 and $34 a share, the source said. Psychiatric Solutions closed at $32.63 on Friday on Nasdaq.
Psychiatric Solutions has a current market capitalization of about $1.87 billion.
A deal could still fail to emerge or a rival bidder could submit a new offer, said the source, who declined to be identified because he was not authorized to speak to the media.
The board of Psychiatric Solutions has not yet approved a deal, the source said.
Psychiatric Solutions had previously been in talks with private equity firm Bain Capital, but Bain cooled on the prospect of a deal, the source said. Bain could still come back with a new offer, the source.
Bain, Psychiatric Solutions and Universal Health could not be immediately reached for comment. (Reporting by Jessica Hall; Editing by Jan Paschal) (For more M&A news and our DealZone blog, go to here)